South Africa · Governance
How South Africa’s formal businesses funded their assets in 2024
Statistics South Africa reported about R9.8 trillion in liabilities in the industries covered by its annual survey. For small enterprises, the aggregate liabilities-to-assets ratio was 0.68, compared with 0.67 across covered enterprises of all sizes.
Sources checked
- 01Start with total liabilities
Include short- and long-term obligations in the reported total. Source 1
- 02Compare with total assets
Divide liabilities by assets to express leverage on a consistent scale. Source 1
- 03Check how the balances are composed
Loans, overdrafts and supplier payables differ in their timing and terms. Source 1
- 04Compare with the same industry and size group
The industry aggregates combine companies with different funding structures. Source 1
The ratio compares liabilities with assets. The composition of the two sides adds information about how the business is financed.
The total fell while some industries increased liabilities
The covered total was 0.7% below the revised 2023 reading. Stats SA reported the largest decrease in business services, while transport, storage and communication recorded the largest increase. The aggregate decline combines these different industry movements. Source 1
Two small-business groups exceeded one
Small enterprises in mining and quarrying and in electricity, gas and water had more liabilities than assets at the level reported. The comparison is for the survey groups as a whole. A company-specific assessment also needs its cash flows, obligations, and the timing of payments. Source 1
Liability mix can matter as much as the ratio
Trade and other payables accounted for 46% of small enterprises’ liabilities in trade. Long-term loans accounted for about two-thirds of small mining and quarrying liabilities. In electricity, gas and water, bank overdrafts accounted for 22%. Each share compares a liability category with the total for its own sector. Source 1
The survey defines which companies enter the benchmark
The Annual Financial Statistics survey covers formal enterprises in specified industries. It excludes sectors including agriculture, direct financial intermediation, insurance, general government and education. The ratio for covered businesses is an aggregate benchmark whose composition differs from listed-company or company-specific data. Source 1 Source 2